44

IBPS PO CWE2013

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countries such as France, West Germany and Italy.

However, following the 1973 oil crisis and the 1973-1974
stock market crash, the British economy fell into recession
and the government of Edward Heath was ousted by the
Labour Party under Harold Wilson. Wilson formed a minority
government on 4 March 1974 after the General Election on
28th February ended in a hung parliament. Wilson
subsequently secured a three seats majority in a second
election in October that year.
The UK recorded weaker growth than many other
European nations in the 1970s; even after the early 1970s
recession ended, the economy was still blighted by rising
unemployment and double-digit inflation.
In 1976, the UK was forced to request a loan of 2.3
billion from the International Monetary Fund. The then
Chancellor of the Exchequer Denis Healey was required to
implement public spending cuts and other economic reforms
in order to secure the loan. Following the Winter of
Discontent, the government of James Callaghan lost a vote
of no confidence. This triggered the May 1979 General
Election which resulted in Margaret Thatchers Conservative
Party forming a new government.
A new period of neo-liberal economy began in 1979 with
the election of Margaret Thatcher who won the General
Election on 3rd May that year to return the Conservative
Party to government after five years of Labour government.
During the 1980s most state-owned enterprises were
privatised, taxes cut and markets deregulated. GDP fell 5.9%
initially but growth subsequently returned and rose to 5% at
its peak in 1988, one of the highest rates of any European
nation.
The UK economy had been one of the strongest
economies in terms of inflation, interest rates and
unemployment, all of which remained relatively low until the
2008-09 recession. Unemployment has since reached a peak
of just under 2.5 million (7.8%), the highest level since the
early 1990s, although still far lower than some other European
nations. However, interest rates have reduced to 0.5% pa.
During August 2008 the IMF warned that the UK economic
outlook had worsened due to a twin shock: financial turmoil
and rising commodity prices. Both developments harm the
UK more than most developed countries, as the UK obtains
revenue from exporting financial services while recording
deficits in finished goods and commodities, including food.
In 2007, the UK had the worlds third largest current account
deficit, due mainly to a large deficit in manufactured goods.
During May 2008, the IMF advised the UK government to
broaden the scope of fiscal policy to promote external balance.
Although the UKs labour productivity per person
employed has been progressing well over the last two
decades and has overtaken productivity in Germany, it still
lags around 20% behind France, where workers have a 35hour working week. The UKs labour productivity per hour

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48. Statement: A first-past-the-post election is one that is

won by the candidate with more votes than others.
Highest vote, majority vote and plurality voting system
use a first-past-the-post voting method but there are
subtle differences in the method of execution. Which of
the following can be the best reason for the assertion
made in the above statement?
1) It is not possible to execute the plurality voting
system.
2) The plurality voting system uses a very complex
procedure so it is not a practical approach.
3) A system which is simple gets wide acceptance.
4) The method is not so important in electing a candidate.
5) None of these
49. Statement: According to a survey, innumerable diseases
and unhealthy habits from the recent pandemic to cancer,
AIDS and obesity have plagued mankind.
Which of the following may be the most plausible cause
of the situation given in the above statements ?
1) The lifestyle and food habits of people are responsible
for this state.
2) Environmental degradation has led to the present
situation.
3) People remain ignorant about their health.
4) Technological advancement and fast pace of life are
contributing to the spread of diseases.
5) None of these
50. Statements: The X finance company has launched a
new tractor loan scheme. It has brought prosperity
among the farmers.
Which of the following assumptions is implicit in the
above statements? (An assumption is something
supposed or taken for granted.)
1) The prosperity of farmers solely depends upon the
tractor loan scheme.
2) Tractor is an important input for farmers to enhance
the farm activities.
3) Earlier there was no tractor loan scheme for farmers.
4) Farmers do not prefer to take loans for buying tractors.
5) None of these

TestII: English Language

Gr

Directions (Q. 51-60): Read the following passage

carefully amd answer the questions given below it. Certain
words have been printed in bold to help you locate them while
answering some of the questions.
Following the end of the Second World War, the United
Kingdom enjoyed a long period without a major recession (from
1945 to 1973) and a rapid growth in prosperity in the 1950s and
1960s. According to the OECD, the annual rate of growth
(percentage change) between 1960 and 1973 averaged 2.9%,
although this figure was far behind the rates of other European